The Scottish FA have issued Hearts with a transfer embargo after the club entered administration in June.
The Scottish Premiership side filed for administration after compiling debts totalling £28.4 million
Club shareholders Ukio Bankas and the club's parent company UBIG - both of which are controlled by former owner Vladimir Romanov - are owed approximately £24m of the debt.
The Edinburgh club will now not be able to bring in new players aged 21 and over until February 1, 2014.
However, the punishment does not apply to those currently registered with the squad, meaning Hearts will be able to offer new deals to already-contracted players.
Administrators BDO have been tasked with saving the financially-stricken club, with a creditors meeting scheduled for August 12.
Hearts will start the new season with a 15-point deduction as a result of entering administration.